© Reuters.
Bernstein analysts have initiated research coverage of the mining sector, with a bullish view on both companies.
The research firm began covering Riot Platforms (NASDAQ:), CleanSpark (NASDAQ:) and Marathon Digital Holdings Inc (NASDAQ:).
Riot and CleanSpark received Outperform ratings, while MARA is rated Market-Perform.
“You may not like it as much as we do, but a dispassionate view of bitcoin as a commodity suggests a cycle shift,” the analysts wrote in a note.
“A good idea is only good if it comes at the right time – SEC-approved ETFs from the world’s largest asset managers (BlackRock (NYSE:), Fidelity et al), seem imminent. The halving “bitcoin (BTC rewards halve every 4 years) is scheduled for April 24. A winning bitcoin miner (Riot, CleanSpark) is a high beta way to gain exposure.”
Analysts’ bullish view on these mining stocks is based on predictions that the world’s largest digital coin will hit $150,000 by mid-2025. This would represent an increase of more than 340% compared to the current price of the cryptocurrency.
“We expect BTC to rally in ETF approvals and initial ETF response, that there will be some profit taking in the halving in April 2024 and that “There will be a major inflection point after the halving, once miner risks dissipate,” the analysts added.